Outrageous insurance increases...

[fast95pony]

I was reading the CBC news and I came across this:

http://www.cbc.ca/news/indepth/background/insurancerates.html


According to Stats Canada ,auto insurance in Alberta has increased by 50 % HOLY CRAP !!

My insurance is due in September.If it goes up like this , I will get rid of a car. Is our Provincial government doing anything about this ?? Why aren't more car owners complaining ??
Insurance companies are saying it's because of increased claims,but they won't open their books , so it's hard to prove this. More like their profits went down . It's about time the government investigated these huge increases.
We are being robbed !!



:banghead: :guns:

[4wheeldrift]

My insurance went down this year. Not by much, like $10 a month, but still. My parents went up something huge though. My dad got into an accident a couple years back, and the lawsuits and everything were finally settled. His first at fault accident in 20 years, and his insurance tripled :eek:

[googe]

Yeah man, its got out of hand. As I mentioned in the other insurance thread, I am under 21 with no claims/tickets/demerits/anything on my record, and theyre robbing $700 a month (8400 a year?) from my wallet. AMA quoted me at just over $1000 a month! :(

Alot of people are pissed off about this, and there was talk on the news of getting the government to step in and regulate.

I suggest everyone look at their policy carefully, and do the math. For example, if your deductible on collision is $1000, and you increase to say $2500, your premium will drop by approximately $650. So, if you dont hurt your car in the given year, you will have saved $650, if you do hurt your car, you will have lost an extra $1500. Now if you dont hurt your car for 2 years, you are saving $1300 bucks. The gamble here is that if you can go 2 years and some months without making a collision claim, this will have already paid for itself and you are then paying a substantially reduced premium for every month after.

However, do not increase your comprehensive deductable, as I found out this has relatively little impact on your premium. Increasing it in my case from $1000 to $5000 only lowered my premium by about 2% a year. Not worth it on that one.

I am now paying between $1500 and $2000 less a year because I increased my collision deductitble to $5000. That means I would have to fork out alot of cash if I did get into trouble, but if I hit the 2.25 year mark without making a claim, I would be saving money even if I had a claim after that.

But here is the fun part. You cant claim shit ANYWAY, because once you make a claim your rates go way up, and youre now high risk. The increase you see on anything short of a $5000 claim is going to have you paying for that claim 3 times over in the long run.

So, to make a long story short, increase your deductible. If you are unsure that you will have enough money for the deductible on a claim, put the money saved from doing this in a savings account. After paying into it the same amount you would have given to the insurance company, you can stop once it reaches the difference in what your deductible is as opposed to what it would have been. After that, you can spend the money you are saving on car parts and beer:thumbsup:

So basically, the whole insurance idea is self defeating. Besides 3rd party liability, which is necessary, it becomes a case of..."I dont want to wreck my car and be out alot of cash, so I need to get insurance, but when I do wreck my car I cant claim it or my insurance will go up, so I cant do that either."

Haha. It would be interesting to get the claim statistics of everyone on beyond and see if we could theoretically compete with the price of collision, assuming the members involved were to pay up every month and have it stored somewhere.

[nickyh]

The insurance companie are blaming 9/11 for the increase in rates.

Since insurance companies own stock and the markets have taken a major nose dive they are passing the cost of their losses onto us.
Mine dropped $2.00 a month - lucky me. Now I can buy half a cup of real coffee once a month.

[Abom]

Collision for younger drivers (21 and under) isn't worth it in most cases, unless you own a rather expensive car. Any car worth $10 000 or less, it just isn't worth getting collision simply because you'll pay out the ass for it.


As for Alberta car insurance, all I have to say is that the government should regulate and run it. Make it a public sector like it is in BC, and all our rates will go down to a fair price. This privatized insurance is :bullshit:

[rage2]

Mine went down, but I have a flawless record. No accidents, no tickets.

Now that I got 1 not at fault accident (got rear ended) wonder if that'll affect my rates next year...

As for government stepping in and doing insurance like in BC, I think it's not worth it, cuz they work on a "no fault" system. Basically, if your car is parked and some jackass nails you, your insurance goes up.

[Abom]

Originally posted by rage2
As for government stepping in and doing insurance like in BC, I think it's not worth it, cuz they work on a "no fault" system. Basically, if your car is parked and some jackass nails you, your insurance goes up.



True, but here, if you get in an accident and it's not even your fault, your insurance *can* go up depending on the accident, why it happened, etc. And if someone nails your car here too, and you make a claim under comprehensive or collision, then your rates also go up, don't they?


No insurance system is perfect, but Alberta and New Brunswick are really getting raped right now :(

[Sai]

I got jewed 2......... lil over 5grand now per year:( ! 1 ticket speeding but... long time ago like 2 years ago:P

[bol]

Originally posted by rage2


As for government stepping in and doing insurance like in BC, I think it's not worth it, cuz they work on a "no fault" system. Basically, if your car is parked and some jackass nails you, your insurance goes up.


A claim is a claim to the insurance companies... in almost all situations it doesn't matter if you were at fault or not, your insurance will go up. If you were at fault it goes up more of course.

I like BC's system, it'd probably be cheaper for a LOT of people here, and maybe cost a little more for some. I dunno though, BC's rates seem to be going up a bit as well.

[rage2]

Originally posted by Abom
True, but here, if you get in an accident and it's not even your fault, your insurance *can* go up depending on the accident, why it happened, etc. And if someone nails your car here too, and you make a claim under comprehensive or collision, then your rates also go up, don't they?
My insurance company told me my rates will not go up because I got into an accident that was not my fault. They said if I got into a LOT of not at fault accidents, then the policy would get reviewed. Not sure what that meant... price hike or termination.

Same goes for hit and run, and windshield. It doesn't jack up your rates, but they can not renew your policy. Windshield, I made 3 claims in 4 years on the 944, and they won't sell me windshield no more but rates are the same.

[Abom]

Originally posted by rage2
My insurance company told me my rates will not go up because I got into an accident that was not my fault. They said if I got into a LOT of not at fault accidents, then the policy would get reviewed. Not sure what that meant... price hike or termination.

Same goes for hit and run, and windshield. It doesn't jack up your rates, but they can not renew your policy. Windshield, I made 3 claims in 4 years on the 944, and they won't sell me windshield no more but rates are the same.


I see, depends on the insurance company too I suppose. Either way, we need some lower insurance premiums in Alberta:thumbsup:

[rage2]

I'm paying under $1000/year on the AMG, under $1000/year on the 944, and $300/year on my Civic (comprehensive too lol!). No complaints here :).

[Altezza]

Insurance companies work heavily on premium-payout ratios (among other factors as well) on deciding whether to keep you or drop you. That doesn't matter if it's accidents, windshields, etc. All they care about is how much they take in compared to what they give out by having you as a client.

Having multiple not-at-fault accidents does hurt you more than most would think. Although it does not play into increasing your premiums, it contributes to their decision of keeping you or not. It pretty much comes down to the fact that you are an at-risk client.

With hit and run, you have to be careful, since it is your insurance company that foots the bill unless they qualify for the provincial fund that contributes towards this (forgot what it's called).

These days, having an insurance company raise your rates is almost a non-issue since it's going to happen one way or another. The thing you hope for is that they still keep you as a client.

[Wakalimasu]

Hrm

Hi, I'm new here

Anyways I'm an indepedent insurance broker in Calgary. If you need some help or a quote, just leave me a private message or send me an email.

[email protected]

Lates

Chi Tang

[Scat]

Young people are getting hit with the increases the worst.
I hope the government comes in and does something about it soon or else i wont be driving anymore :(

[fast95pony]

here's my rant : In Alberta you are required to have insurance to drive a car. Fair enough.But should those insurance companies , who have a virtual monopoly , be allowed to charge want they want ,increase rates by huge amounts, drop you if they don't like you , and if they happen to loose money for whatever reason , just bill their customers more ?? They are not required to open their books . A customer has no way to complain or bring his/her case to . It's pay up , or don't drive , or even worse , drive uninsured .

There should be some moderating body that a customer can complain to.

When was the last time an insurance company went bust ??

They have a licence to print money !

[Weapon_R]

Originally posted by Scat
Young people are getting hit with the increases the worst.
I hope the government comes in and does something about it soon or else i wont be driving anymore :(

My dad works for the provincial government. They are looking at imposing some increase restrictions right now. There are many problems with this, however. The main problem is that the lawyers are extremely displeased with any insurance restriction. To restrict an insurance companies premium increases, would mean that there would be a cap on insurance payouts for injuries. The lawyers are strongly opposing this, and there are thousands that are ready to fight the decision in court. Smaller payouts translate to a smaller commission rate for the lawyers, something they don't want to see occur.

[kaput]

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[Abom]

Originally posted by Weapon_R
My dad works for the provincial government. They are looking at imposing some increase restrictions right now. There are many problems with this, however. The main problem is that the lawyers are extremely displeased with any insurance restriction. To restrict an insurance companies premium increases, would mean that there would be a cap on insurance payouts for injuries. The lawyers are strongly opposing this, and there are thousands that are ready to fight the decision in court. Smaller payouts translate to a smaller commission rate for the lawyers, something they don't want to see occur.


Yeah, fuck those injury lawyers, it's party THEIR fault that insurance is so high in the first place. I know a guy who got $10 000, yes, $10k for fucking whiplash (which he didn't even really suffer from in any way that he couldn't go to work or something). Fuck those injury lawyers :thumbsdow

[Akagi Redsuns]

What a scam insurance companies are. So sad you pay so much a year and yet we are scared to use the coverage for fear that they will increase when it's time for renewal.

I wonder if I can start an insurance company? Sounds like a good business model, lol.

[4wheeldrift]

Originally posted by Abom



Yeah, fuck those injury lawyers, it's party THEIR fault that insurance is so high in the first place. I know a guy who got $10 000, yes, $10k for fucking whiplash (which he didn't even really suffer from in any way that he couldn't go to work or something). Fuck those injury lawyers :thumbsdow And this is the problem. Its $10k here, $20k there, $50k over there, all these settlements add up to a lot of money. Sometimes these injuries are legitimate, but many times they are just people trying to cash in. People with legitimate injuries that keep them from working and suchlike should have access to the money, but people making bullshit claims should end up in prison for insurance fraud. Wish more of them did.

[finboy]

i think the government should start an insurance company and set the rates lower than all other companies, forcing all other companies to match or beat their quotes, while still having more than 1 option available.

[Seanith]

yeah hopefully the government steps in. If my insurance increases, i will probably have to take the train to school and such during the winter and only insure my car during the summer :banghead:

[Abom]

Originally posted by 4wheeldrift
And this is the problem. Its $10k here, $20k there, $50k over there, all these settlements add up to a lot of money. Sometimes these injuries are legitimate, but many times they are just people trying to cash in. People with legitimate injuries that keep them from working and suchlike should have access to the money, but people making bullshit claims should end up in prison for insurance fraud. Wish more of them did.


Agreed. Some people really do get badly injured, some even lose limbs, which is REALLY shitty. They deserve the compensation because their life will never be the same, and they will have a lot more expenses than they would have had they never gotten in a crash, they might have to quit their job, etc. This is why we have insurance in the first place, in case something really bad does happen. And that is only right.


I was once in A-1 Autobody, and a guy was in there (17 to 19 year old middle eastern kid), getting a quote for some damage to his car. Then he sat down on the couch while he waited, and I overheard him talking with his friend about how he got hit by another car (it MIGHT have been a city of calgary vehicle, didn't hear that part clearly), and he's getting a settlement of $25 000 because of his neck injuries and whip-lash. He was bragging about how he was going to fly back home to Pakistan in the summer, first class plane tickets, and load up on stuff since he got all this free money.


Now, I saw him clearly standing there, sitting down, when he got up and left, etc. He had ZERO neck problems, and didn't appear at ALL to have whip-lash. Fucking guy was lying through his ass so badly it smelled from blocks away :thumbsdow


Now that he has all that money he's probably going to go take several vacations, and blow the rest on some other useless shit. People like that are a BIG reason all our insurances (all over North America for that matter) are so high :thumbsdow

[SI-vic]

Mine went up 40%.
Damn what a HIKE!
Could've used that money on...... something better. hahaha

[3G]

my dads van got hail damage and he went to make a claim they told him "your insurance rate will go up" and he didnt do the claim!

[FiveFreshFish]

Originally posted by rage2
Now that I got 1 not at fault accident (got rear ended) wonder if that'll affect my rates next year...

If you had a no-claims bonus, then that's all you'll lose.

[nickyh]

My parents were rear ended by a girl who was driving her parents car (she has no insurance) and my mom has major back pain as a result and will more than likely take it to her grave. Used up $10,000 in physio and lives on Tylenol 3's.
We are praying that she gets a huge payout because she may not be able to work much longer in her line of work.
The thing has been with the lawyers for over a year and a half and we hope settlement happens soon. How do others get their settlements so guick?

[Abom]

Originally posted by nickyh
My parents were rear ended by a girl who was driving her parents car (she has no insurance) and my mom has major back pain as a result and will more than likely take it to her grave. Used up $10,000 in physio and lives on Tylenol 3's.
We are praying that she gets a huge payout because she may not be able to work much longer in her line of work.
The thing has been with the lawyers for over a year and a half and we hope settlement happens soon. How do others get their settlements so guick?


You need to sue the other insurance company to get a fast settlement. I'm assuming you guys aren't suing in civil court? If you're not, then yeah, things won't go so fast, and you might not get a lot of money at all. If you need / want the money fast, you need to visit a personal injury lawyer and go the suing route. This is an example where you SHOULD be getting compensation, so make sure you get it.

[Akagi Redsuns]

Originally posted by FiveFreshFish


If you had a no-claims bonus, then that's all you'll lose.

If the accident was a no-fault, then the other guy's insurance company is paying for repairs, not your own. So the no-claims bonus should still be there. That would be the logical way to look at it and I would hope the insurance company will see it the same way.

[Abom]

Originally posted by Akagi Redsuns
If the accident was a no-fault, then the other guy's insurance company is paying for repairs, not your own. So the no-claims bonus should still be there. That would be the logical way to look at it and I would hope the insurance company will see it the same way.


Yep. Is most cases, this is how it works. But there are some fucker insurance companies out there who would fuck you over on it.